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www.MerrittProperties.comPRO FORMA OPTION 2
Option 2: Advanced Thermal Batteries Lease
12/2/2014
Square Footage:
41,168
Glover Building - 221 Cockeysville Road
Investment Analysis
Inputs:
Notes:
Purchase Price
57.08
$
- Purchase of a 41,168 sf (Includes 5,000 sf Office) Building
Rent: ATB
7.75
$
31,168
- Existing Tenant In Building paying $4.25 on 10,000 SF
Rent: Marathon Roofing
4.25
$
10,000
($7.25 Shell rate )
Cap Rate:
8.00%
- Building Costs include:
LTV:
70%
New Roof:
170,000
4.13
Interest Rate:
5.70%
Generator:
-
-
HVAC:
-
-
Tenant Improvements:
-
$
31,168
Sprinkler:
250,000
6.07
Power:
-
-
Windows (Front):
-
-
Landscaping:
50,000
1.21
Total:
470,000
11.42
- 36 Parking Spaces
Proforma Income Statement
Gross
PSF
Development Costs
Gross
PSF
Rental Income:
284,052
$
6.90
$
Purchase Price
2,350,000
57.08
Operating Expenses:
94,686
2.30
Design and Development
-
-
Less Vacany (5%)
(14,203)
(0.34)
Sitework
-
-
Total Income:
364,536
8.85
Building Improvements
470,000
11.42
Finance and Legal (1.25%)
29,515
0.72
Construction Carry
-
-
Operating Expenses:
Lease up Carry
-
-
Property Taxes
41,168
1.00
Contingency
-
-
Insurance
4,117
0.10
Utilities
24,701
0.60
Subtotal
2,849,515
69.22
Maintenance
24,701
0.60
Management Fee (4%)
14,581
0.35
Tenant Improvements:
-
-
Subtotal:
94,686
2.30
Commissions (4%)
95,000
2.31
Net Operating Income:
269,849
6.55
Total Development Costs
2,944,515
71.52
Financial Analysis:
Tenant TI:
Cap Rate
8.00%
Generator
90,000
2.19
Value
3,373,118
81.94
HVAC
80,000
1.94
Proposed LTV
70%
Power
100,000
2.43
Proposed Debt
2,361,182
57.35
Windows
50,000
1.21
Interest Rate
5.70%
TI
200,000
4.86
Period
25
Elevator
150,000
3.64
Debt Service
(177,397)
(4.31)
W/H TI
50,000
1.21
Cash Flow:
92,452
2.25
Return on Costs
9.16%
Total
720,000
17.49
Equity Required
583,333
Return on Equity
15.85%
Amo TI
$3.76
Equity Created
428,603
Static Return With Tenant Specific TI
Rent:
10.00
10.25
10.50
10.75
11.00
11.25
11.50
11.75
12.00
12.25
12.50
12.75
13.00
ROC:
11.27% 11.52% 11.77% 12.02% 12.27%
12.52%
12.77% 13.03% 13.28% 13.53% 13.78% 14.03% 14.28%
ROE:
271.78% N/A N/A N/A N/A
N/A
N/A N/A N/A N/A N/A N/A
N/A